The New York State budget is poised to introduce significant changes to the mobile sports gambling landscape.
Senator Joseph Addabbo disclosed that the state has amassed over $2 billion in revenue for education since the inception of mobile sports betting platforms approximately two years ago. Despite this considerable figure, Addabbo said there is substantial potential for further growth, Spectrum News 1 reported.
“The Super Bowl, March Madness, these are the iconic sports betting event days so we look forward to this time of year. [It] certainly does benefit our educational system as the money does go to education, but mobile sports betting still in New York is a very solid, robust business,” NYS Senate Racing, Gaming & Wagering Committee Chair Joe Addabbo was quoted as saying in the report.
“We always are out there looking at how to make the New York mobile sports betting product better,” he said.
A notable inclusion in the Senate budget proposal is legislation allowing betting on future awards such as tournament MVPs, pre-game coin tosses, and proposition bets. These could encompass various events like predicting the color of Gatorade doused on the winning Super Bowl coach or the duration of the national anthem.
“I want New Yorkers to have the same product or even better product than other states have it and other states have those kinds of bets. There’s no reason why New York should not within a safe measure,” he added.
Another provision within the Senate budget proposal underscores a commitment to allocate 1% of revenue, or a minimum of $6 million annually, towards addiction services targeting problem gambling. This initiative seeks an approach toward mitigating potential adverse effects associated with increased gambling activity.
“I believe anything that has a fiscal implication, and we’re not talking hundreds of millions of dollars, but we are talking about improving a product for the sake of New Yorkers, it should be in the budget,” he said, as per the report.
However, some bettors may encounter limitations, as they won’t be able to wager on teams hailing from within the state, such as Colgate and Wagner. Addabbo clarified that this measure was enacted to safeguard college athletes from potential inducements that could influence game outcomes.
“While there’s no talk about changing it at this point, we never say never,” Addabbo added.
The senator further highlighted that certain considerations, such as adjustments to the 51% tax rate paid by operators to the state and the issuance of additional operator licenses, are presently not under deliberation.
New York accounted for more than 37% of the total tax revenue generated nationwide from sports betting during the third quarter of 2023, according to a study released by the US Census Bureau.
The Quarterly Survey of State and Local Tax Revenue (QTAX), which recently added sports betting to its list of tax sources, revealed that sports wagering amassed just under $506 million in national tax and gross receipts in Q3. This was 20.5% higher than in Q3 2022 but much lower than $571.5 million in Q2 2023.
Notably, New York stood out with $188.5 million in tax revenue, nearly five times higher than the second-ranking state, Indiana, which brought in $38.6 million. Ohio, Illinois and Pennsylvania rounded out the top five states with $32.9 million, $32.4 million and $28.8 million in tax collections, respectively.